Miners, banks lead FTSE 100 to second day of gains

LONDON (MarketWatch) — Resource firms posted some of the biggest gains in London on Monday as they advanced alongside rising commodity prices, while Hammerson PLC climbed after a well-received earnings report.

The FTSE 100 index
UKX, -1.42%
rose 1.1% to close at 6,736.00, marking a second-straight day of gains.

Mining firms and energy companies were also among major advancers, as both oil prices and most metals prices moved higher. Shares of oil major BP PLC
BP., -2.43%BP, -1.42%
picked up 0.3%, BG Group PLC
UK:BG
rose 1.1%, and Royal Dutch Shell PLC
RDSB, -2.11%RDS.B, -1.07%
advanced 0.6%.

Among miners, shares of Randgold Resources Ltd.
RRS, -2.41%
gained 1.7% after Citigroup lifted the company to neutral from sell. The analysts said valuations for gold miners have improved as the price of gold is stabilizing.

The data calendar was light in London on Monday, with investors instead preparing for important data out later in the week. On Wednesday, labor figures for December are out, including the unemployment rate, wages and claimant count. Market participants are closely watching for any signs of improvements in the labor market, after the Bank of England last week scrapped its original forward guidance and said it would consider a broad range of indicators before raising interest rates.

BOE Governor Mark Carney said in an interview on BBC on Sunday that there are still forces holding back the economic recovery and that interest rates won’t rise until the labor-market slack is reduced. Before the updated guidance last week, the BOE was watching mainly the unemployment level, but as that rate in recent months dropped closer to the 7% joblessness threshold, pressure mounted on the central bank to update its rate expectations.

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